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3G, smartphones to sustain mobile device growth

Posted: 13 Jan 2009     Print Version  Bookmark and Share

Keywords:mobile handset  3G  smartphones  2G 

The mobile handset market is expected to have dropped by 5 per cent in Q4 of 2008, but ABI Research still manages to see a few rays of sunshine for the sector in the coming year.

Market research group ABI suggests shipments went into a tailspin in October and November, but predicts that despite a tough year ahead, there will be considerable resilience in smartphones and in both 3G categories of W-CDMA and CDMA2000.

These are represent 39 per cent of shipments, but are expected to increase to 50 per cent or more of the market, according to ABI Research Asia-Pacific vice president Jake Saunders.

"Much of the brunt of the economic downturn will be experienced in the 2G categories. W-CDMA handset shipments are projected to grow from 258 million (25.8 crore) in 2008 to 725 million (72.5 crore) in 2009. By 2013, more than 67 per cent of all handsets shipped will be 3G or 3G+ capable," says Saunders.

The high end smartphones segment, which accounted for 14 per cent of the 2008 market, should increase over the next few years to take a 31 per cent share by 2013, according to ABI.

Cellular modems will also see strong growth in 2009, driven largely by USB dongles, which will account for 80 per cent of shipment by volume.

Total shipments are expected to increase by more than 55 per cent in the coming year as Asian vendors push forward with low-priced modems, while operators come up with creative plans to lure new subscribers – such as daily plans and per-megabyte fees.

-John Walko
EE Times Europe

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